If you’re interested in choosing IUL life insurance, there are two options to consider first with this plan. You can choose between term life insurance and permanent life insurance, which have different benefits. Term insurance doesn’t have a payout, and only pays if there is a death. These will max out in either 10 or 20 years, and are the more affordable options. Permanent life insurance, however, will have a cash value and could offer a payout.
It will also last up to your death, which means there are higher premiums for these policies.
There are other complexities to these policies that are different from standard life insurance policies. They are able to build a higher cash value and offer flexibility, but there are risks since they are stock-market driven, and you could have an invested life insurance that isn’t worth much because of the risks you took over the years. There are also participation limits on these policies, which can restrict how much or how large you build your policy.
Not all companies offer this type of life insurance, so you’ll need to know who the IUL life insurance companies are if you’re looking to make this investment. These companies include Nationwide, Pacific Life, Penn Mutual, and other companies that you can find with your insurance agent.
